block 37 summary.docx

1、block 37 summaryBLOCK 37 PROSPECTING LICENCEREPORT ON EXPLORATION ACTIVITIES AND EXPENDITURES FOR THE PERIOD 8 DECEMBER 2004 8 DECEMBER 2007During the above-mentioned period, the Management of Omai Bauxite Mining Inc. and Bosai Minerals Group (Guyana) Inc. were engaged in the execution of exploratio

2、n activities in the Area (commonly referred to as Block 37), described in Prospecting Licence PL 17/2004, granted by the Guyana Geology and Mines Commisssion to the Licensee, Omai Bauxite Mining Inc. These activities were focused on accumulation of topographic details of the deposit as well as preli

3、minary computer modeling for quantification and qualification of the bauxite reserves based on the available borehole data.The major accomplishments of these activities have been: Completion of the Boundary Survey of the deposit. Completion of Phase 1 of the Topographic Survey (main access roads, se

4、condary roads and trails). Conversion of existing borehole information data into electronic format. Computer modeling using Gemcom software to generate Geological and Block Models of the deposit for reserve estimation, grade distribution and resource classification. Commencement of Phase 2 of the To

5、pographic Survey (cutting survey lines at 800 ft. (244 m) intervals parallel to the old 1,600 ft. (488 m) drill hole grid). Commencement of in-fill drilling to provide additional data for optimising and upgrading of the Geological and Block Models. Collation of data through a Hydrological Survey to

6、determine the seasonal impact on flow rates of the major rivers and creeks traversing the deposit. Compilation of a detailed plan of the deposit encompassing all data garnered from the Boundary and Topographic Surveys to date.Expenditure during the period is summarised as follows:Geology / Modelling

7、 $ 65,274Surveys $ 70,197Drilling $ 35,520Assays $ 1,440Property and Administration $ 28,813Total $ 201,244Attached are summary reports which were submitted on all activities conducted during the tenure of the Prospecting Licence.Omai Bauxite Mining Inc.Block 37 Prospecting LicenseAnnual Report 2006

8、During 2006, a significant amount of work was accomplished to convert the database from previous drill results into electronic format. A block model was constructed using the electronic database. Resources were calculated and categorized. In the field, the land-boundary of Block 37 was surveyed. Thi

9、s survey was not completely finished at year-end.Electronic DatabaseUnder the supervision of the OGML Technical Superintendent and a Cambior geologist, all known drill hole data for Block 37 was tabulated into electronic spreadsheets. This work was subsequently checked for accuracy by comparison wit

10、h the original paper copy. The parameters included in the database were total Al2O3, total SiO2, total Fe2O3, and total TiO2.Computer ModelingGemcom software was used for block model creation. An initial topographic surface was created from the drill hole collar elevations. A three-dimensional geolo

11、gic model was created, which featured a single bauxite layer defined by the upper and lower surfaces of the bauxite present in each drill hole. The overburden, present above the bauxite to the surface, was assigned a single rock-code in the model.A clipping polygon was used to limit the perimeter of

12、 the deposit based on excluding holes where less than meter of bauxite was present. Drill spacing is 1,600 feet (487 meters) on the Block 37 deposit. Some drill holes outside of the actual boundaries of Block 37 were used in the model. This was done to supply more data so that the eventual resource

13、calculation could calculate to the edge of the Prospecting License (PL) when the bauxite was present at the edge of the PL. The bauxite outside the PL boundary was, of course, not included in the resource tabulation.The 3-D geologic model was incorporated into a block model. The 2-foot (0.61 meter)

14、original sample assay data in the geologic solid were composited into 1.5-meter intervals. This was consistent with the modeling done on the Montgomery Deposit and represents the 2-meter mining interval. Composites of less than 0.6 meters were excluded from the database. Variography was performed by

15、 Francis Clouston of the Cambior administrative office in Canada.Inverse Distance Squared method was used to estimate the resource. This is the same estimation method used on the Montgomery resources and reserves. For the resources estimation, a flat, omni-directional search ellipse was employed to

16、account for the tabular nature of the bauxite layer. The estimating parameters for the resource calculation are in table 1.Table 1 Inverse Distance Squared Estimation ParametersResourceCategorySearch RadiusX,Y,Z axisMax Numbercomposites/holeMinimum numberComposite samplesMeasured80 M, 80M, 50M39Indi

17、cated200M, 200M, 50M36Inferred300M, 300M, 50M33The Z-axis parameter used was larger than the variography indicated but the 50-meter value was used so that composites from more than one drill hole, especially on the edges of the bauxite layer, could be captured. Any undesirable effects of an exaggera

18、ted Z-axis are mitigated by limiting the estimation to only the bauxite layer and also by the limit of three composites per hole.The calculations were made and tabulated into the internationally recognized resource categories. The resources were also tabulated as to distribution in silica-content gr

19、ade categories used in mine planning at the Montgomery Mine. A dry density of 1.72 tonnes per bank-cubic meter was used in the calculations. This is consistent with the bauxite in the Montgomery deposit. The mining resources for Block 37 are listed in Table 2. There were no tonnes in the “Measured”

20、category since the drill spacing is so far apart.Table 2. Mineral InventoryResourceClassificationTonnesTotal% Al2O3Total% SiO2Total% Fe2O3Total% TiO2Measured0-Indicated1,727,56859.334.751.362.13Inferred69,802,40060.034.801.602.23TOTAL71,529,96860.014.791.592.22The resources were tabulated according

21、to grade distribution. The Montgomery convention of 0 to 4% SiO2 as Low Silica, 4% to 7% SiO2 as Medium Silica, and 7% to 10% SiO2 as High Silica was used.Table 3. Grade Distribution of the ResourcesGrade DistributionTonnesTotal% Al2O3Total% SiO2Low Silica39,987,89761.212.98Medium silica22,362,40259

22、.095.30High Silica10,362,30958.408.46V. High Silica2,817,36057.8610.47TOTAL71,529,96860.014.79There is approximately 20% more low silica bauxite than medium and high silica material combined.Land-Boundary SurveyDuring 2006, a project was initiated to survey the boundary of Block 37. The project was

23、not completed at the end of the year. The work started in late September and an estimated two weeks more work will be needed for completion in 2007.The survey work involved cutting approximately 10 kilometers of survey line. The Northeastern corner of Block 16 was used as the starting reference. Inf

24、ormation from the Official Gazette 128/2004 1591 GS14:0-17 was consulted to locate this point. However, the information in the Official Gazette was based on approximations. A drawing of Block 16 and Block 37 from the GGMC vault was found and this information was used to establish a more precise loca

25、tion. The discrepancy was reported to the government.The survey was accomplished with the use of a Total Station instrument. The field readings were compiled and subsequently reduced into the OBMI database and grid. The work traversed the Kara-Kara River and the Lemuna Creek as well as swampy areas.

26、 Working drawings were produced to note progress. Upon completion, final drawings and maps of the survey will be created.Block 372006 ExpensesExpenses incurred for the 2006 work-year are tabulated as follows. These expenses were not according to the original budget since the work plan has changed su

27、bsequent to the preparation of the budget. More emphasis was placed on background understanding of the deposit in 2006. This will allow a more focused approach to field activities planned for 2007.Block 372006 CostsActualBudgetGeology3,07616,000Modeling44,1980Survey12,1500Drilling052,200Property and

28、 Administration11,4412,000TOTAL70,86570,000Geological expense was incurred in the areas of data review and the researching of old records.Modeling costs were due to technician time spent entering drill data to create the database. Technologist time was spent to create and run the models on the compu

29、ters as well as for database error checking.Surveying costs were incurred mainly for the actual survey including survey reduction and mapping and drafting and also for line cutting and brush removal. There were also contractor expenses for a boat in inaccessible areas.There was no drilling done on B

30、lock 37 in 2006.Property and Administrative expenses included annual fees, general project planning and over-site, and management follow-up. These costs also included scheduling, contract administration, general transportation costs, and accounting costs.BLOCK 37 PROSPECTING LICENCEREPORT FOR 2007Su

31、mmaryThe first Quarter of 2007 was marked by the transition of management of Omai Bauxite Mining Inc. from Iamgold to Bosai Minerals Group Co. Ltd. as a result of the latters purchase of Iamgolds 70% shares in OBMI. Subsequently, the name of the company was changed to Bosai Minerals Group (Guyana) Inc. The Government of Guyana retains the remaining 30% shares in BMGGI.Despite the change in management, work continued in Block 37, with the Boundary Survey being completed in April 2007 and the Topographic Survey, begun in May 2007, expected to be 50% completed by the